RickyRay, I want to say that you are doing a great job of communicating with all of us. You're keeping your cool very well, and working with everyone trying to help. We all thank you for keeping such a great attitude!
Second, as I posted earlier, having BOTH the CD Import screen and the HD Files Import screen fail has never been reported before. Thus, I can't believe that it is Hoster causing this. When one computer exhibits a problem of this magnitude in two separate screens, and no one else has ever reported the problem, it is VERY UNLIKELY it is the software.
With the large number of Hoster users, the problem would appear to others also if it were the software.
Do you have a second computer? If so, please install Hoster on it and report your findings.
If not, Beavis made a suggestion a while back to reformat your computer hard drive and re-install Windows, Hoster, etc. That is the only other suggestion I can offer.
As Bryan pointed out there may not be enough hard drive space to create the Temp folder, but you indicate that "appears" to not be the case.
I present the theory... there MAY BE some wierd problem with Windows that is PREVENTING the Temp folder from being created or growing to the necessary size. There is no setting I have ever heard of you could tweak to change this. That is why I suggest trying Hoster on a second computer first, then if that fails, reformat your C hard drive and reinstall everything.
Given all that has been tried, I have no other explanation other than the computer is preventing Hoster from importing correctly. You need to persue this direction now, instead of waiting longer for MTU to say we have a bug. Bug's can't uniquely target only one computer.